What's new for the 2021 tax year

2021 Standard Deduction
         
Filing Status                                                                       Standard Deduction                                 Add for Blind and/or Over 65
             Married Filing Jointly or qualifying Widow(er)................      $  25,100                                                    $ 1,350
             Single...........................................................................          12,550                                                    1,700
             Head of Household.......................................................          18,800                                                        1,700
             Married Filing Separately..............................................          12,550                                                        1,350


Earned Income Credit
               Working taxpayers with the following number of Children                                          Maximum Credit
               None; AGI < $21,430 ($27,380 if MFJ)                                                                       $1,502 for no children
               One; AGI < $42,158 ($48,108 if MFJ)                                                                         $3,618 for one children
               Two; AGI < $47,915 ($53,865 if MFJ)                                                                         $5,980 for two children
                Three or More; AGI < $51,464 ($57,414 if MFJ)                                                        $6,728 for three or more children
               Investment income limited to $10,000.00

         
Important Tax due Date
             March 15,2022                  S-Corp and Partnership (Form 1120-s/Form 1065) due date
                  April 18, 2022                    Individuals(personal)C-Corp (calendar year)  and Estates and Trusts
                                                              (Form 1040/Form 1120/Form 1041) due date
                  September 15, 2022          Partnership, S-Corp, Estates and Trusts if extended.
                  October 17, 2022               Individuals(personal) and C-Corp if extended.


Key Amounts
            IRA Contribution Limits
                      < age 50    ...........................      $6,000
                      > = age 50 ...........................      $7,000                 
                 Standard Mileage Rates

                       Business                              56¢                     
                              
Medical/moving                    16¢
                             
Charitable                             14¢
                            
 Depreciation component      26¢
                 Gift Tax annual Exclusion
                                                 $15,000 
                 Estate and Gift Tax Exclusion                                           $11,700,000

                 Exclusion for gift to spouse who is not a U.S. citizen        $159,000     
                 Foreign Earned Income Maximum Exclusion                   $108,700


Employer-Provided Dependent Care
                 For 2021 only, the exclusion for employer-provided dependent care assistance is increased from $5,000 to $10,500 (from $2,500 to
                 $5,250
for MFS). A plan that adopts this change will not fail to satisfy the requirements of IRC Sec.125(cafeteria plans) and IRC sec.129
                 (dependant care assistance programs-DCAPs) if the plan is amended for this change retroactively as long as the amendment is adopted
                 no later than the last day of the plan year in which the amendment is effective, and the plan is operated consistent with the terms of the 
                 amendment on the effective date of the amendment and ending on the date the amendment is adopted.